Glencore Sees $3.3 Billion Trading Profit as Iran War Rattles Oil Markets
Oil prices surged more than 7% on Wednesday as renewed U.S.-Iran hostilities and fresh threats to shipping through the Bab el-Mandeb pushed WTI above $84 and Brent toward $90, confronting the Federal Reserve with another inflation shock just hours before one of its most uncertain interest-rate decisions in years.
The rally accelerated after President Donald Trump vaguely told Fox News that the United States would “hit Iran hard” following an attack on a U.S. base in Jordan, while Iran-backed Houthis weighed imposing fees on commercial shipping through the Bab el-Mandeb Strait and U.S.-Saudi forces launched fresh strikes against Houthi positions in Yemen.
Brent crude was up 7.06% at 9:29a.m. ET Wednesday, reaching $90.03, while WTI was trading up 6.95%, at $84.77.
The renewed geopolitical premium comes just hours before the Federal Reserve announces its latest interest-rate decision, with markets divided over whether policymakers will leave rates unchanged or deliver the first rate increase since 2023. Investors are also looking for clues from Chairman Kevin Warsh after the Fed abandoned the forward guidance that had shaped market expectations for more than two decades.
June’s inflation report eased pressure on the Federal Reserve after lower oil prices helped cool headline inflation during the brief lull in the Iran war, but that relief appears to have been short-lived. With crude prices once again flirting with $90 as fighting resumes, investors are divided over whether policymakers will leave interest rates unchanged or respond to renewed inflation risks.
The Houthis are also tightening pressure on Red Sea oil flows. After claiming they struck a Saudi tanker, the group warned it is considering new measures against commercial shipping transiting the Bab el-Mandeb, including imposing transit fees on vessels using the strategic waterway. The latest threat comes as Saudi Arabia has already begun rerouting crude exports through Egypt’s SUMED pipeline to bypass the chokepoint.
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